retail | IST

Has supply disruption impacted festive demand? Experts discuss


Global supply chains have been hurt due to shortage of containers at loading ports. Commodity prices are continuing to rise. Cost pressures hurting companies' margins. Yet, all is not lost for this festival season. Industry insiders say they are expecting good growth in garments, jewellery and beauty & wellness categories this festival season.

Shipping schedules have been disrupted leading to a shortage of containers at loading ports, thereby dealing a blow to the global supply chain.
On the other hand, commodities are continuing to see rise in prices. The S&P GSCI index that tracks the most liquid commodities, scaled to 590 in October ― a 50 percent jump from the end of the last calendar year.
Cost pressures are also reflecting in early signs of margin pressure for several companies. For example, a study of the early-bird results of 161 non-financial sector companies listed on the NSE reveals that while 75 companies saw operating profit margin decline on sequential basis for the quarter-ended September. 78 companies witnessed a year-on-year decline.
In an interview to CNBC-TV18, Mukesh Kumar, CEO of Infiniti Mall, said that footfalls in malls have picked up very fast this year and overall consumption demand is rising. However, he said, footfalls may not be similar to 2019 levels due to restrictions on the number of people entering the mall.
Kumar Rajagopalan, CEO of Retailers Association of India, said that their recently concluded survey indicates that about 94 percent of customers are looking forward to shopping during this festival season. He added that they are seeing good growth in garments, jewellery and beauty & wellness categories.
Nilesh Gupta, Director of Vijay Sales, said, "There has been a little shortage on the supply side, but the brands have ensured that they were able to procure material from our country. The short supply is more pronounced in the mobile and laptop categories, but it is not as if we don't have mobiles or laptops in stock, but if a consumer wants a particular brand or a particular model number that may not be there in stock. He will have to upgrade or take a lower model. On large television screens, we were expecting a shortage, but some magic happened with the brands and they have been able to get the screens. However, in large-screen entry-level televisions, there has been a shortage of products."
Watch video for entire discussion..